MALAYSIA'S inflation eased to 1.8 per cent in September from 1.9 per cent in August, but rising global oil prices and producer costs remain a concern for the government amid the conflict in West Asia.
Economy Minister Akmal Nasrullah Mohd Nasir said the government was not taking the moderation in consumer inflation for granted, given that crude oil prices had surged to US$116.80 a barrel last month from US$90.90 in August.
He said the country's Producer Price Index (PPI) also rose 12 per cent in September, compared with 10.7 per cent the previous month, pointing to mounting cost pressures that could affect businesses and eventually feed through to consumer prices.
In a written parliamentary reply, he said the government was adopting a comprehensive approach to cushion the impact of higher fuel and commodity prices, including targeted subsidies to protect households from direct increases in fuel costs.
The government would maintain the subsidised RON95 price at RM1.99 a litre under the BUDI MADANI RON95 (BUDI95) programme, alongside the BUDI MADANI Diesel scheme for eligible recipients.
“From September, the monthly BUDI95 quota was increased to 300 litres, while the BUDI Diesel quota for jeep and pick-up users was raised to 400 litres,” he said.
He was responding to Datuk Seri Panglima Dr Jeffrey G Kitingan (GRS-Keningau), who asked about measures to address inflation and the adverse effects of higher oil and goods prices arising from the conflict in West Asia.
Akmal said the government was also retaining appropriate subsidy and price-control mechanisms, including the Subsidised Petroleum Control System (SKPS) and Subsidised Diesel Control System (SKDS), for sectors with a direct bearing on transport costs and the prices of goods.
These measures were intended to ease cost pressures on the transport and logistics sectors and prevent increases in global fuel prices from being passed on abruptly to domestic goods and services, he said.
The government was also strengthening price and supply monitoring through continuous market checks, including the PriceCatcher platform, to identify changes in the prices of essential goods with a significant impact on household spending.
Allocations for the Jualan RAHMAH MADANI and Jualan Agro MADANI programmes would be increased to RM750 million in 2027 from RM630 million, with 35,000 sales events targeted.
The initiatives include expanding RAHMAH sales to rural areas, low-cost housing areas and People's Housing Projects (PPR), while Agro MADANI offers fresh agricultural produce at prices up to 30 per cent lower.
He said targeted assistance for vulnerable groups would also be strengthened, with allocations for the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) programmes increased to RM16 billion.
SARA would also be expanded to cover fresh and wet produce at 216 farmers' markets and tamu under the Federal Agricultural Marketing Authority (FAMA), as well as through a wider network of small grocery shops participating in the programme.
“Targeted assistance allows fiscal resources to be channelled to those most in need, rather than blanket subsidies that also benefit higher-income groups,” he said.
Other measures include strengthening food and energy security, domestic supply chains, productivity and production efficiency, while diversifying sources of inputs and markets to reduce the economy's exposure to prolonged global supply disruptions and commodity price increases. - October 30, 2026
